WIREDGOV

The Financial Services Authority (FSA) has today published a draft code of practice on remuneration policies relevant to all FSA regulated firms.

The aim of the code is to ensure that firms have remuneration policies which are consistent with sound risk management, and which do not expose them to excessive risk. It is not concerned with setting levels of remuneration, which are a matter for the boards of companies and their shareholders.

FSA chief executive Hector Sants said:

“We have already outlined the work we have been doing on remuneration during the last 12 months. The code of practice we have published today is the next stage in that work and clearly lays out the framework we expect firms to adopt.”

The FSA will consult on the code and further proposals for remuneration policy in March.

NOTES FOR EDITORS

1. The code of practice on remuneration policies can be found on the FSA website.
2. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.